On Thursday, February 27, the U.S. Senate Commerce, Science, and Transportation Subcommittee on Surface Transportation, Freight, Pipelines, and Safety met for a hearing entitled, “Grand Theft Cargo: Examining the Costly Threat to Consumers and the U.S. Supply Chain.” Members called on several witnesses to provide testimony and discuss the rise in cargo theft and potential solutions to prevent cargo-related criminal activity. 

Witness List 

• Will Johnson, Chief Special Agent, BNSF Railway Policy Department & Second Vice President of the International Association of Chiefs of Police of Fort Worth, Texas 
• Robert Howell, Chief Supply Chain Officer, Academy Sports and Outdoors of Katy, Texas 
• Adam Blanchard, Principal and CEO, Tanager Logistics and Double Diamond Transport of San Antonio, Texas 
• Lewie Pugh, Executive Vice President of Owner-Operator Independent Drivers Association of Grain Valley, Missouri   

Rising Trends in Cargo Theft 

The Federal Bureau of Investigation defines cargo theft as the “theft of goods, chattel, money, or baggage that constitutes, in whole or in part, a commercial freight shipment moving in commerce.” According to a report from the supply chain and logistics company Overhaul, cargo theft in 2024 increased 49% in volume and a 17% increase in average value compared to 2023. The cargo theft prevention and data site CargoNet reported that California, Texas, and Illinois represented 52% of all thefts in Q3 of 2024 and were the states with the most cargo thefts. Overhaul reported that while California remains the state with the most cargo thefts, Tennessee, Georgia, and New Jersey also experienced increased cargo theft, indicating that theft is more widespread than before. 

Cargo theft can be as simple as freight being physically stolen from its current location by thieves looking for things they can steal quickly. This can happen especially if goods are left unattended. While companies and governments have been combating cargo theft for a long time, another form of cargo theft has been on the rise in recent years: strategic cargo theft. 

Strategic cargo theft is defined as the use of manipulation of data, paperwork, and other deceptive tactics to steal cargo. In a digital age, cargo theft can occur from a computer screen, where the thief never shows their face or touches the property they are stealing. One industry voice pointed to changing supply chain strategies during the Covid-19 pandemic as a root cause of cargo theft today and a driver of strategic cargo theft. Retailers would generally contract with a known company to move goods from warehouse to retail store. There was a strong partnership where the retailer knew the trucking or shipping company drivers well and had consistent and open communication with shippers.  

By the end of 2021, the cost of moving a container of freight rose from $1,400 in 2020 to $20,600. In an effort to reduce the cost of shipping, retailers moved from dedicated and known entities to the brokerage world. In this system, retailers would move goods with whoever provided the cheapest option from distribution to destination. The world of moving goods became much more nebulous, absent of the dedicated relationships that provided a sense of security for shippers, retailers, and the public. In a more nebulous environment, thieves can thrive. Fictitious pick-ups, posing as legitimate carriers, double-brokering, or stealing identities to take possession of goods are all schemes within strategic cargo theft that can be committed anytime or anywhere. In some cases, criminals will purchase the motor carrier (MC) numbers from the internet and then pose as a legitimate trucking company with a legitimate operating history.  

Implications of Cargo Theft 

The impact of rising cargo theft has several implications. In his opening remarks for Thursday’s hearing, Sen. Todd Young (R-IN) mentioned that cargo theft incurs an annual cost of $15-30 billion for the economy. The loss in goods due to cargo theft is associated with rising costs, which impact smaller businesses and consumers, according to the witnesses. In response to Sen. Gary Peters (D-MI), Howell described how his company cannot recover the goods lost, which drives up costs in the supply chain and increases prices for the consumer. Beyond higher prices, if a company loses cargo due to theft, the consumers do not receive their shipments. That can damage the relationship between the consumer and the company because the consumer may not feel comfortable relying on the company to deliver its goods safely. As Howell described, it can hurt customer loyalty.  

The increase in cargo theft and the costs incurred by businesses has a safety component, which Pugh expanded on while responding to Sen. Peters. Accordingly, small trucking businesses are severely impacted by cargo theft, because the company will have to deal with the cost of losing goods on top of the regular maintenance, fuel, and other expenses. Small trucking businesses may not have the ability to stay afloat and will go out of business. Pugh pointed out that many of these businesses employ truckers with decades of experience, and going out of business means those experienced truckers are no longer on the road. A loss in experienced drivers reduces the number of safe drivers on the road. Pugh’s and Howell’s testimony suggests that the implication of cargo theft is far-reaching, going beyond the surface-level economic costs, but down to the societal costs of reduced customer loyalty and safety concerns.  

The Role of Government 

Throughout the hearing, subcommittee members and witnesses alike voiced concerns and solutions for the role of government in addressing cargo theft. Sen. Deb Fischer (R-NE) inquired about the relationship between local, state, and federal law enforcement, especially when it comes to enforcement of cargo theft across state lines. In many cases, a criminal group may be based in one place, and in the world of strategic cargo theft, commit the crime somewhere else. On top of that, cargo theft involves mobility, with goods being moved across state lines. Inquiry about local, state, and federal law enforcement is appropriate here because there may be confusion about which agency is responsible. Chief Johnson responded to the inquiry, stating that the challenge is enforcement agencies having the capacity to juggle a myriad of threats. Local agencies do a lot of work in addressing crimes, and Johnson added that federal agencies and the U.S. Attorney General should provide direction and resources to help local and state agencies. 

One agency in particular was the subject of much of the conversation on the federal government’s role in cargo theft. Throughout the hearing, witnesses emphasized the need for the Federal Motor Carrier Safety Administration (FMCSA) to be a continued and stronger presence in addressing cargo theft. Blanchard presented his company (Tanager Logistics)’s experience with an organization using the company name to commit cargo theft and that there were two instances of the company’s name on the FMCSA website, both legitimate and fraudulent. When Tanager Logistics requested to have the fraudulent name removed, FMCSA was unable to do so. While Blanchard voiced his concern with this personal experience, he made it clear in the hearing that the FMCSA is an important player in addressing cargo theft. According to Blanchard, the FMCSA ought to be one of the leading agencies in addressing cargo theft. At multiple points in the hearing, witnesses urged Congress to provide direction and resources to the FMCSA to increase its cybersecurity capabilities, improve its vetting procedure of brokers and motor carriers, and improve its National Consumer Complaint database.  

Aside from Congressional directives to federal agencies, witnesses urged Congress to consider several pieces of legislation aimed at cargo theft. The Safeguarding our Supply Chains Act, introduced by Representatives David Valadao (R-CA) and Brad Schneider (D-IL), would establish a Supply Chain Crime Coordination Center and Supply Chain and Theft Task Force. The Coordination Center would collect and analyze data related to supply chain fraud and the Task Force would be a joint effort between multiple agencies to detect, disrupt, and deter organized crime groups engaged in cargo theft.  

The Household Goods Shipping Consumer Protection Act was reintroduced by Senators Fischer and Tammy Duckworth (D-IL), along with House Representatives Eleanor Holmes Norton (D-DC) and Mike Ezell (R-MS). The bill would restore the FMCSA’s ability to impose civil penalties against unauthorized brokers, mandate companies operating in the household goods sector to maintain a legitimate place of business, direct FMCSA to analyze trends among companies applying for shipping authority to identify fraudulent activity and allow states to use federal funds to enforce consumer protection laws related to household goods. This legislation provides the FMCSA with increased knowledge and enforcement of cargo theft.  

Going Forward 

I have been an avid rail fan for most of my life, which means I enjoy going to places and watching the trains go by. Passenger trains are easier to catch because their schedules are publicly available, which makes it easier to know a train’s location and when it will pass by. Freight trains are more difficult to find, as railroad companies do not make train schedules publicly available. That can be frustrating for a rail fan who wants to see the trains go by, but important for a railroad to maintain some amount of security in its freight shipments. While rail fans are generally harmless train enthusiasts, there are more nefarious characters in the world who are also interested in where trains are. I became acutely aware of this issue in 2022 when a series of cargo thefts of intermodal trains left thousands of damaged packages littering Union Pacific-owned trackage in Los Angeles. The theft left so many customers devoid of their packages and cost Union Pacific a pretty penny in lost merchandise.  

At the end of the hearing, Sen. Young referenced the recent cargo theft in Arizona, in which $400,000 worth of Nike brand shoes were stolen from a BNSF train. Thieves managed to cut the air brakes at one of the freight cars, forcing the train to slow down and giving them a chance to steal the merchandise. The ongoing trend of cargo theft is an issue that has economic and societal implications. The challenge placed before the public and private sectors is immense. The rise in strategic theft makes it easier for criminals to get away with theft. However, the incident in Arizona points to another challenge, especially for rail-related cargo theft. Freight trains are considerably long lines of moving merchandise. If a cargo thief were to cut the air brake at a car towards the back half of the train, by the time the engineer notices the problem, stops the train, and makes their way down a mile of train, the thieves are long gone. In trucking, unattended vehicles or hostile thieves can lead to criminals getting away with theft. In all cases, the danger posed to transportation workers is immense, highlighting that cargo theft is also a safety issue.  

There are several challenges with the rise in cargo theft, but as witnesses in the hearing discussed, there are public sector strategies poised to make a difference. Cargo theft is an ongoing security and safety issue, with severe implications for people, companies, and the economy. At the end of the day, increased ability to identify potential bad actors and increased enforcement are strong proactive and deliberate policies against cargo theft.